Wang Jianlin made billions speculating on Chinese real-estate; now that he's diversified into buying Hollywood movie studios and chains of movie theaters, the richest man in China is prepared to say what many have known: the Chinese property market is a huge, deadly bubble that's ripe to burst.
The issue is the huge buildout of commercial properties in secondary and tertiary cities -- developments for which there is no demand, created solely to absorb speculators' capital with the promise of quick flips to other, dumber speculators.
The big problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.
"I don't see a good solution to this problem," he said. "The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."
It's a serious worry in China, where the economy is slowing at the same time as high debt levels continue to increase rapidly. There are massive sums at stake in the real estate market: direct loans to the sector stood at roughly 24 trillion yuan ($3.6 trillion) at the end of June, according to Capital Economics.
Billionaire: Chinese real estate is 'biggest bubble in history'
[Jethro Mullen and Andrew Stevens/CNN Money]
(via Naked Capitalism)
The public markets are hungry: as Uber and Lyft look to IPOs to let their investors -- who have been subsidizing 40-50% of every ride -- redeem their shares through sales to the public capital markets, the companies are desperate for ways to reduce their unprofitability and increase those share prices.
Pepsi's plan to pay a Russian company called Startrocket to loft an artificial constellation of cubesats with mylar sails to advertise a "nonalcoholic energy beverage" has been cancelled for unspecified reasons (the company says its prototype launch using high-altitude balloons was a "one-time event").
* whether they deserve one or not
It’s 4/20! Smoke ’em if you got ’em – and if you haven’t got ’em, check out this roundup of deep discounts on pipes and other accessories. They’re all on sale, but you can take an extra discount off the final price courtesy of the Boing Boing store by using the online code 420SAVE. Freeze […]
Ever wonder if you’re cleaning your teeth well enough? If your last dentist visit has you getting a little more thorough about oral care, it might be time to save yourself some guesswork. A lot of electric toothbrushes promise deep cleaning, but there’s a Platinum Sonic Toothbrush that has power plus the simple but effective […]
The digital age is well and truly upon us, but let’s not forget there’s a load of free TV content floating literally over our heads. No, we’re not talking about the internet. Signals from major broadcast networks are still gratis for anyone who can pick them up with an antenna. And before you envision those […]